CH-3-4 Organizational Commitment – Organizational Behavior: Improving Performance and Commitment in the Workplace : Chapter Notes

This Document Contains Chapters 3 to 4 Instructor’s Manual: Ch. 3: Organizational Commitment CHAPTER OVERVIEW The chapter opens with a discussion of three different types of organizational commitment – affective, continuance, and normative. Responses to negative events are also examined, including exit, voice, loyalty and neglect, with exit and neglect also described as physical and psychological withdrawal. Finally the chapter covers workplace trends such as diversity and employee-employer relationships, which can influence organizational commitment, and gives suggestions for fostering a sense of commitment among employees. LEARNING GOALS After reading this chapter, you should be able to answer the following questions: 3.1 What is organizational commitment? What is withdrawal behavior? How are the two connected? 3.2 What are the three types of organizational commitment, and how do they differ? 3.3 What are the four primary responses to negative events at work 3.4 What are some examples of psychological withdrawal? Of physical withdrawal? How do the different forms of withdrawal relate to each other? 3.5 What workplace trends are affecting organizational commitment in today’s organizations? 3.6 How can organizations foster a sense of commitment among employees? CHAPTER OUTLINE 1.Organizational Commitment A. Organizational commitment is defined as the desire on the part of an employee to remain a member of the organization B. Employees who are not committed to their organizations engage in withdrawal behavior – actions that help the employee to avoid the work situation II. What Does It Mean to Be a “Committed” Employee? Try This! Open the class by asking students to picture a scenario where they’ve worked for their first employer for a number of years and have been approached by a competitor. Ask them what factors would cause them to stay and list those factors on the board, subtly grouping them into affective, continuance, and normative factors (without using those terms). Allow the students to guess what the groupings reflect. This process will result in a table similar to Table 3-1. A. Types of Commitment 1. Affective Commitment – a desire to remain a member of an organization due to an emotional attachment to, and involvement with, that organization a. Research shows that people with affective commitment engage in more interpersonal and organizational citizenship behaviors, such as helping, sportsmanship, and boosterism b. Affective behavior is influenced by the bonds between employees i. Erosion model says that employees with fewer bonds will be more likely to quit the organization ii. Social influence model says that employees who have direct linkages with “leavers” will themselves be more likely to leave OB Assessments: Affective Commitment. This brief survey can be used to give students a feel for their affective commitment levels, if they are currently working (or have recently worked). Use a show of hands to see how many students fell above and below the average level, and see if students will volunteer any extremely high or low scores. Ask students with particularly high scores what explains their levels, and do the same for students with particularly low scores. Do the part-time employees in the class feel less committed than the fulltime employees? Why might that be? Please see the Instructor PowerPoints for Bonus Assessments on Continuance Commitment and Normative Commitment. Please see the Connect assignments for this chapter for assessments on Embeddedness and Network Centrality. Please email me at [email protected] if you have any questions about using these assessments in your teaching. 2. Continuance Commitment – a desire to remain a member of an organization because of awareness of the costs associated with leaving it a. Continuance commitment is increased by the investment an employee has in an organization, as well as lack of employment alternatives b. Embeddedness summarizes an individual’s links to the organization and community, and what he or she would have to sacrifice for a job change. The more embedded a person is, the more likely he or she will stay in his or her current position. OB on Screen: Up in the Air. The clip referenced in the book begins around the 5:50 mark of the film, continuing until about the 9:42 mark. The clip depicts Ryan Bingham as he supplements his busy travel schedule for work with a speaking engagement at a Hampton Inn in Columbus. Ask the students whether they agree with the “moving is living” sentiment, that a life of attachments winds up weighing a person is down. Ask them how an individual might come to feel that way, and what the plusses and minuses to his/her employee might be. Please email Jason Colquitt ([email protected]) if you have any questions about using OB on Screen in your teaching. Try This! Use the Up in the Air clip for a different chapter. The clip provides good discussion fodder for Chapter 4 on Job Satisfaction. Do students view travel as a positive, in terms of work values? What moods and emotions does travel tend to arouse? Does travel instill variety in a job characteristics sense, or does it instead instill monotony? In terms of Chapter 9 on Personality and Cultural values, what traits does Ryan Bingham seem to possess? Do those make him a good or bad fit for a travel heavy job? Bonus OB on Screen (from 2nd ed): The Incredibles. The clip begins around the 26:53 mark of the film, continuing until about the 30:41 mark. The clip depicts Bob Parr (once a superhero named Mr. Incredible) as he tries to adjust to life at Insuracare--the insurance company in which he’s been placed as part of the Superhero Relocation Program. Ask the students why Bob remains committed to Insuracare--what form of commitment does he feel and why does he feel it? Does Insuracare benefit from Bob’s commitment? Why or why not? Note that this discussion could take a broad view on the consequences of commitment--including not only voluntary turnover but also behaviors that are counterproductive to the firm. Bonus OB on Screen (from 1st ed): The Firm. The clip begins around the 2:34 mark of the film, continuing until about the 13:25 mark. The clip depicts Mitch McDeere, a Harvard law student, as he interviews with Bandini, Lambert, and Locke, a small law firm in Memphis. The scenes reveal a firm that encourages marriage and children to its employees, because children bring stability. The firm seems charming, if old fashioned, until the end of the second chapter, when a somewhat sinister-looking man meets with the senior partners to detail the phone calls Mitch’s wife made from their hotel. That scene hints at the true nature of the firm, which has the mob as its primary client. One topic for class discussion is whether the firm is really taking the right approach in building commitment among its lawyers—is it smart for them to focus on building continuance commitment and embeddedness? Is there anything else they could do to build commitment instead, considering the illegal nature of their activities? 3. Normative Commitment – a desire to remain a member of an organization due to a feeling of obligation a. Two ways to build a sense of obligation-based commitment among employees: i. create a feeling that the employee is in the organization’s debt ii. become a charitable organization B. Withdrawal Behavior 1. Withdrawal behavior (a set of actions performed to avoid the work situation) is particularly important in times of organizational crisis Asset Gallery (Performance, Commitment, Development/OB Video DVD): Stop Slacking. This Today Show video clip features an interview with author Larry Winget and a discussion of employee withdrawal. Winget believes that withdrawal is clearly wrong--that it should be treated as a black and white issue, not a grey one. He also makes some controversial claims about generational trends with respect to withdrawal and commitment--claims that typically generate extensive student discussion. 2. Employees respond to negative work events in one of four ways: a. Exit – an active, destructive response where the employee removes him/herself from the situation b. Voice – an active, constructive response, where the employee tries to change the status quo c. Loyalty – a passive, constructive response, where the employee maintains public support for the company, but privately hopes for an improvement d. Neglect – a passive, destructive response, leading to a decline in interest and effort on the job OB at the Bookstore: Switch. The author describes the steps required to make voice result in true change. Change occurs when you make required steps clear, when you appeal to people’s hearts, and when you shape the situation. These steps allow change to occur from the bottom-up rather than the topdown. Ask students to recount any change experiences they’ve witnessed or undertaken. Were any of those steps missing, and did that absence seem to harm the results? 3. Four Types of Employees a. Stars – High Commitment, High Performance i. Respond to negative events with voice b. Citizens – High Commitment, Low Performance i. Respond to negative events with loyalty c. Lone Wolves – Low Commitment, High Performance i. Respond to negative events with exit d. Apathetics – Low Commitment, Low Performance i. Respond to negative events with neglect 4. Types of Withdrawal a. Psychological (Neglect) i. actions that provide a mental escape from work environment, including: a. daydreaming b. socializing c. looking busy d. moonlighting e. cyberloafing Try This!: Have an in-class debate about whether managers should actively monitor internet usage, and punish employees who seem to be engaging in too much cyberloafing. Assign one side of the class to be the “yes” side and the other to be the “no” side, writing the arguments on the board. Then allow students to switch sides to make additional arguments. Then take a vote to see if the class as a whole is in favor of monitoring internet usage. Asset Gallery (Human Resource Management/Hot Seat): Privacy: Burned by the Firewall. This Hot Seat feature shows how disciplinary actions regarding excessive psychological withdrawal (e.g., personal phone calls, cyberloafing) might play out. Students will see the difficulties in defining and laying out effective procedures, and the “slippery slope” nature of dealing with such issues. b. Physical (Exit) i. actions that provide a physical escape from the environment a. tardiness b. long breaks c. missing meetings d. absenteeism " e. quitting 5. Models of Withdrawal Try This! After going through all of the psychological and physical forms of withdrawal, ask students whether they think they are positively, negatively, or uncorrelated with respect to their frequency. Try to direct discussion in such a way that students provide logic for all three positions, because all are somewhat intuitive in their own way. a. Independent forms model i. Argues that various withdrawal behaviors are uncorrelated with one another, occur for different reasons, and fulfill different needs on the part of employees b. Compensatory forms model i. Argues that various withdrawal behaviors negatively correlate with one another – doing one means you are less likely to do another c. Progression model i. Argues that various withdrawal behaviors are positively correlated with each other – exhibiting one behavior increases the tendency of exhibiting other behaviors ii. This is the model that has received the most research support C. Summary: What Does It Mean to Be a “Committed” Employee? III. Workplace Trends That Affect Commitment A. Diversity of the Workforce 1. U.S. workforce is becoming increasingly diverse in terms of ethnicity, age, education, and nationality 2. As workgroups become more diverse, there is a danger that minority employees will find themselves on the fringe of work networks, which can reduce affective commitment. Foreign born nationals are less likely to have continuance commitment, since they are less embedded in the communities in which they work. OB Internationally. This text box discusses the difficulty multinational organizations may have in keeping employees committed to the organization, especially when they are given expatriate assignments. When teaching classes with a significant foreign-born population, you may ask students to think about whether they are more committed to their home country or to the country in which they are currently residing. Their answers will give them a feeling for the kind of ambivalence often felt by expatriate employees. B. The Changing Employee-Employer Relationship 1. Downsizing, or involuntary turnover, and the associated practices of outsourcing and using temporary workers, are fundamentally altering the way employees view their relationships with their employers today Try This! Ask students, by show of hands, how many have had a family member who was downsized. Allow any students who are willing to to share their anecdotes. Then ask, again by show of hands, how many students feel they will work for 1 employer their whole career. Two employers? Three? Four? More than four? Ask them whether their answers to the question are somehow influenced by growing up amid decades of downsizing. Has downsizing impacted their expectations of their own commitment levels? 2. But downsizing typically doesn’t make companies more profitable – one study shows that it takes companies two years to return to their former levels of profitability post downsizing 3. Employees who remain with an organization after a downsizing tend to have “survivor syndrome”, and they have feelings of anger, depression, fear, distrust, and guilt 4. These trends have changed the psychological contracts that employees have with their employers. Those contracts are now more likely to be transactional in nature (reflecting a narrow set of specific monetary promises and obligations) and less likely to be relational in nature (reflecting a broader set of open-ended " and subjective promises and obligations). IV. Application: Commitment Initiatives A. In general, organizations can foster commitment by being high in perceived organizational support, which can be viewed as an employer’s commitment to its employees. Organizations can show support by: 1. Providing bonding activities and mentoring activities designed to increase affective commitment 2. Providing a salary and benefits package, and advancement and promotion opportunities, to increase continuance commitment 3. Providing training and development opportunities to increase normative commitment 4. Identify the root source of even minor withdrawal as soon as possible, to try and stop its progression DISCUSSION QUESTIONS 3.1 Which type of organizational commitment (affective, continuance, or normative) do you think is most important to the majority of employees? Which do you think is most important to you? Answer: Responses to this question will vary from student to student, but most will point to affective as being the most ideal form. In your discussion of their responses, it may be useful to consider whether we really know what keeps us on the job. Normative commitment effects are subtle, and may not be recognized by the people they affect. In addition, continuance commitment factors may trump affective factors at times, with employees staying with a company that makes them unhappy due to a sense of practical or financial need.3.1 Which type of organizational commitment (affective, continuance, or normative) do you think is most important to the majority of employees? Which do you think is most important to you? • Most Important to the Majority of Employees: Affective commitment is often considered the most important for the majority of employees. This type of commitment arises from an emotional attachment to the organization, leading employees to feel that they belong and are valued. It typically results in higher job satisfaction, motivation, and overall engagement. • Most Important to Me: For me, affective commitment would also be most important. Feeling emotionally connected to the organization and its goals can significantly enhance job satisfaction and motivation. This type of commitment fosters a sense of belonging and alignment with the organization’s values, which can drive personal and professional fulfillment. 3.2 Describe other ways that organizations can improve affective, continuance, and normative commitment, other than the strategies suggested in this chapter. How expensive are those strategies? Answer: Organizations might improve affective commitment by giving employees a reason for their work, thus making employees think that the work has meaning and is important. Genetech does this by putting up large pictures of the people helped by Genetech drugs around their campus – it is a low-cost way to engage people and make them more committed to the organization. Continuance commitment might be increased through bonuses or other rewards, but also through the acquisition of competing companies in the area, thus removing employee options for work. Both of these approaches can be expensive, although obviously the latter is more expensive than the former. Normative commitment can be fostered by fostering a sense of trustworthiness in top management. Being open and honest aboutkey events can build a sense of integrity regarding top management, which can create a sense of obligation among employees. 3.3 Consider times when you’ve reacted to a negative event with exit, voice, loyalty, or neglect. What was it about the situation that caused you to respond the way you did? Do you usually respond to negative events in the same way, or does your response vary across the four options? Answer: Each student will have an individual response, but this question offers a good opportunity to reinforce the concepts that differing levels of performance and commitment lead to different responses to negative events in the organization. It may also be helpful to point out to students that performance and commitment are interrelated and that both are influenced by environmental factors within the organization. Reactions to Negative Events: • Exit: When I felt that a situation was beyond repair or too detrimental to my well-being, I chose to exit. For instance, if a work environment became too toxic and unmanageable, leaving was a way to protect my mental health and career. • Voice: I’ve used the voice approach when I felt there was a chance to address issues constructively. For example, if there was a process or policy that was inefficient but had the potential for improvement, I would speak up to suggest changes. • Loyalty: In situations where I believed in the organization's mission or felt that the issues were temporary, I demonstrated loyalty by sticking with the company and supporting it through challenges. This was often influenced by a strong alignment with the organization’s values or a belief in the team’s potential to overcome difficulties. • Neglect: I have sometimes shown neglect when the negative event seemed too trivial to address or when I felt powerless to effect change. This response usually happened in less critical situations where the issue did not significantly impact my overall job satisfaction or performance. Consistency of Response: My response to negative events tends to vary depending on the severity of the issue, the potential for resolution, and my overall investment in the organization or situation. While I may generally lean towards voice and loyalty if I see potential for improvement, exit and neglect become more likely when the situation feels unchangeable or if my personal values and well-being are at stake. 3.4 Can organizations use a combination of monitoring and punishment procedures to reduce psychological and physical withdrawal? How might such programs work from a practical perspective? Do you think they would be effective? Answer: Monitoring and punishment programs may decrease physical withdrawal, but they are likely to increase psychological withdrawal, since most employees respond to coercive management efforts with resistance, rather than compliance or commitment. Combination of Monitoring and Punishment Procedures: • Monitoring: Organizations can use monitoring to track employee performance, engagement, and behavior. This involves regular check-ins, surveys, and performance metrics to identify signs of withdrawal early. Monitoring helps in understanding the root causes of issues and in providing timely support. • Punishment Procedures: Punishment might include formal reprimands or disciplinary actions for behaviors that are counterproductive or disengaged. It serves to address negative behaviors and encourage adherence to organizational norms and expectations. Practical Implementation: • Integrated Approach: A practical program could involve regular performance reviews combined with a system for reporting and addressing issues related to psychological and physical withdrawal. This system would need to ensure that monitoring is fair and transparent, and that punishment is consistent and applied only when necessary. • Supportive Measures: Alongside punitive measures, organizations should provide support mechanisms such as counseling, coaching, and opportunities for professional development. This creates a balanced approach where employees understand the expectations but also feel supported in meeting them. Effectiveness: • Potential Benefits: This combination can be effective if implemented thoughtfully. Monitoring helps in early detection of problems, while punishment can deter negative behaviors. However, punishment alone is unlikely to address the root causes of withdrawal. • Potential Risks: Over-reliance on punishment can lead to a negative work environment, reduced morale, and increased stress. It may also lead to superficial compliance rather than genuine engagement. Conclusion: A combination of monitoring and punishment can reduce withdrawal if it is part of a broader strategy that includes positive reinforcement and support. The approach should focus on addressing underlying issues and creating an environment that promotes engagement and well-being. 3.5 Can you think of reasons the increased diversity of the workforce might actually increase organizational commitment? Why? Which of the three types of commitment might explain that sort of result? Answer: Increased diversity brings with it an opportunity to learn and experience new things, which can make work more meaningful and enjoyable and increase affective commitment. If the increased diversity winds up improving organizational performance, then affective commitment could be further increased as employees identify more with “a winner.” In addition, employees who view increased diversity as “the right thing to do” could respond to such initiatives with increased normative commitment. Reasons Increased Diversity Might Increase Organizational Commitment: 1. Broader Perspectives: Increased diversity can lead to a richer exchange of ideas and perspectives, which can enhance problem-solving and innovation. Employees may feel more engaged and committed when they see that their diverse contributions are valued. 2. Enhanced Inclusion: A diverse workforce can foster an inclusive environment where employees from various backgrounds feel respected and valued. This sense of inclusion can strengthen emotional bonds to the organization. 3. Improved Representation: When an organization reflects a diverse workforce, employees may feel that the company is more representative of their values and identities, leading to increased loyalty and commitment. 4. Better Employee Morale: A commitment to diversity can improve overall workplace morale, as employees may perceive the organization as progressive and socially responsible, which can enhance their own commitment to the company. Type of Commitment That Might Explain the Result: • Affective Commitment: This type of commitment is based on emotional attachment to, and involvement in, the organization. Increased diversity can enhance affective commitment by fostering a more inclusive and supportive work environment, where employees feel valued and connected to the organization on an emotional level. When employees perceive that their unique perspectives are appreciated and that they belong to an inclusive workplace, their emotional attachment to the organization is likely to strengthen. 3.6 Studies suggest that decades of downsizing have lowered organizational commitment levels. Can you think of a way that an organization can conduct layoffs without harming the commitment of the survivors? How? Answer: One way is to handle the layoffs in an exceptionally fair manner--by providing notice of the layoffs in an honest and sincere way, by carefully explaining the business reasons for the layoffs, and by providing extensive severance and placement assistance (for more on this, see Chapter 7 on Trust, Justice, and Ethics). Survivor commitment will also be more protected if the remaining employees get the sense that the layoffs are truly helping the long term financial performance of the firm. Ways to Conduct Layoffs While Minimizing Harm to Survivor Commitment: 1. Transparent Communication: Clearly communicate the reasons for the layoffs and the criteria used for decision-making. Transparency helps survivors understand the rationale behind the layoffs and reduces uncertainty, which can mitigate feelings of unfairness. 2. Support and Counseling: Provide support services, such as career counseling and emotional support, to those who are laid off. Knowing that the organization cares about departing employees can improve morale among survivors. 3. Fair Process: Ensure that the layoff process is perceived as fair and objective. Use clear criteria and involve multiple levels of management in decision-making to avoid perceptions of bias. 4. Employee Involvement: Involve employees in the decision-making process regarding how the layoffs are conducted, if possible. Soliciting input on how to handle layoffs can increase buy-in and reduce negative impact on remaining employees. 5. Focus on Future Growth: Emphasize the organization’s commitment to future growth and development. Provide a clear plan for how the company will move forward and how remaining employees will be involved in this new phase. 6. Recognition and Rewards: Recognize and reward the efforts and loyalty of remaining employees. Offering incentives, such as bonuses or additional time off, can help maintain morale and motivation. Implementation: • Communication Strategy: Develop a comprehensive communication plan that includes regular updates, one-on-one meetings, and Q&A sessions to address employees’ concerns. • Support Programs: Establish support programs, including counseling services and career transition workshops, to help laid-off employees and show survivors that the organization is handling the situation with care. • Fairness Protocol: Implement a protocol for decision-making and selection criteria that is transparent and consistent, and ensure that it is communicated effectively to all employees. Effectiveness: These strategies can help maintain organizational commitment among survivors by addressing their concerns, demonstrating fairness, and showing a commitment to their well-being. By focusing on transparent communication and support, organizations can reduce the negative impact of layoffs and help survivors remain engaged and committed to the company. CASE: COSTCO Questions: 3.1 How exactly does Costco’s low turnover rate help it in its battle against Walmart? Will any of those factors also help against Amazon? Answer: The most obvious way that it helps is cost savings, as a low turnover rate has a direct and quantifiable impact on the bottom line. That allows Costco to compete on price with Walmart, which is critical. The experience that Costco builds because of that stability also helps, given that there are many similarities in business models for Walmart and Costco. That stability is less helpful when competing with Amazon, because Costco likely needs “fresh blood” to deal with a different kind of competitor. Costco’s Low Turnover Rate and Its Advantages: 1. Enhanced Customer Service: Low turnover means experienced employees stay longer. This contributes to higher-quality, consistent customer service, which is a significant competitive advantage against Walmart. Experienced staff are better equipped to assist customers, create a positive shopping experience, and build customer loyalty. 2. Increased Efficiency: With lower turnover, Costco benefits from a more experienced workforce that operates more efficiently. This leads to smoother operations, fewer errors, and faster service, all of which contribute to a better customer experience and operational cost savings. 3. Cost Savings on Recruitment and Training: Reducing turnover minimizes the costs associated with recruiting and training new employees. These savings can be reinvested into the business, potentially allowing Costco to offer better wages or lower prices, which strengthens its competitive position against Walmart. 4. Strong Employee Engagement: Employees who stay longer are more likely to be engaged and committed to the company. This can translate into higher productivity and a more positive work environment, which further enhances customer service and operational efficiency. Impact on Competition with Amazon: 1. Customer Service and Experience: While Costco’s low turnover improves in-store customer service, Amazon's competitive edge lies in its online shopping convenience and vast product selection. However, the personalized and knowledgeable in-store service at Costco can complement its online presence and attract customers who value in-person shopping experiences. 2. Operational Efficiency: Experienced employees at Costco contribute to efficient store operations and inventory management. This efficiency is crucial in maintaining low prices and high stock turnover, which can be advantageous in competing with Amazon’s pricing and delivery speed. 3. Employee Loyalty and Brand Image: Costco’s reputation as a good employer with low turnover can enhance its brand image and attract customers who support businesses with ethical employment practices. This can be a differentiator in a market where consumers increasingly value corporate social responsibility. Conclusion: Costco’s low turnover rate strengthens its competitive position against Walmart by ensuring high-quality customer service, operational efficiency, and cost savings. While the direct impact against Amazon is less pronounced, the focus on excellent in-store service, operational efficiency, and a strong brand image can help Costco differentiate itself and complement its overall strategy in a competitive retail landscape. 3.2 What would a “perfect turnover rate” be for a company like Costco? Describe the consequences of a turnover rate that’s too low. Answer: It’s hard to argue with an overall turnover rate of 5-percent. That seems about perfect. But the 1-percent level among executives could indeed be too low. The consequences of that would be an inability to spot and react to new and emergent threats—threats that don’t resemble issues that Costco faced five or ten years ago. 3.3 If you were in charge of human resources at Costco, would you retain the philosophy of sending rank-and-file employees to school rather than hiring business school graduates? Why or why not? Answer: There is a lot of wisdom in this approach. The prospect of future promotions is a motivator that also breeds continuance commitment, even as receiving promotions builds affective and normative commitment. It is key to receive a business school education to be exposed to new and cutting edge ideas. But if you can get that positive with your own employees—as opposed to outsiders—it can be a win-win. All that is lacking here are recruits and hires that have not already drunk the “Costco Kool-Aid,” which could be valuable from an innovation perspective. BONUS CASE: ACCENTURE (from 2nd ed) It’s 5:00 in the morning, time to rustle out of bed to catch your flight from Atlanta to San Francisco. You’ll be in the City by the Bay for the next four days, helping a major retailing client implement a new information technology system. Then you’ll fly back to Atlanta on Thursday, working from home on Friday. You’ll need to do it all again next week, and the week after that, and the week after that. That’s the schedule for Keyur Patel, a consultant at Accenture—the New York-based consulting firm that stands 97th among Fortune’s “100 Best Companies to Work For.” Accenture’s 150 offices can be found in 53 different countries, on six different continents. Although Patel’s current assignment is stateside, he works virtually with team members in Manila and Bangalore. This sort of arrangement is typical at Accenture, with the firm’s 178,000 employees needing to be able to work from anywhere, depending upon the needs of their clients." Accenture hires 60,000 employees a year, many of them straight out of college. That may seem like a lot of new hires, given the company’s size. The key to understanding that number lies in the turnover rate for the consulting industry. On average, consulting firms lose 15–20 percent of their workforce each year. The career path for consultants is often summarized as “up or out,” with employees either being promoted after putting in some time or voluntarily turning over to pursue a job with less travel and more stable hours. The most recent estimates put Accenture’s own attrition rate at 15 percent, down from 18 percent two years prior. The challenge for firms like Accenture is keeping employees committed to an organization that they rarely see. After all, consultants like Patel are scattered around the world, rarely coming face-to-face with their manager, and often lacking a true headquarters." Accenture has pursued several strategies to create a sense of loyalty and attachment among its consultants. It organizes quarterly “community events” where groups of 50–150 employees come together for charity drives, cultural fare, or sports activities. These events are designed to give the consultants some sense of connection, despite the far-flung nature of their work. The company also instituted a sabbatical program, where consultants can arrange to have a portion of their paychecks set aside for a three-month vacation after three years of service. Accenture also invests a great deal in their employees, with consultants spending an average of 75 hours a year in training sessions. For example, consultants can take a training course on leading teams whose members are geographically separated. The hope is that these sorts of investments will instill a sense of value in further years of service, keeping consultants at the firm for a longer time period. You might think that Accenture’s primary concern is losing its people to other top consulting firms. In fact, Accenture actually loses most of its consultants to its very own clients. A consultant at another firm explains the appeal of client firms this way: “The coolest thing about being a consultant is that I know exactly where I would go work if I left, because I already have assessed the workplace of the company.” As Accenture consultants works with more and more clients, they develop a broader network of contacts that become potential employers. Those moves typically bring more stability and the sense of moving into a “smaller pond.” Jill Smart, the chief human resources officer at Accenture, understands the unique difficulties in retaining consultants. In reflecting on the company’s commitment efforts, she notes, “We saw that we had people leaving to go do work that they could do here, and when we asked them about it, they said, ‘We didn’t know that we could do that’. Smart’s observation explains the rationale for Accenture’s “Career Counselor” program. Each new hire is assigned a career counselor—an employee a few levels up, chosen by the human resources groups, who works in the same functional area. The counselors know all the career options within the company, so they can explain all the options to good employees before they are even tempted to go elsewhere. Consultants such as Keyur Patel have monthly conversations with their counselors, who typically mentor four or five consultants. “He will talk to me about how I am doing and what opportunities he sees for me,” Patel says of his counselor. “He advised me to use my Fridays to really connect with the local office and make sure I always feel a sense of belonging.” Although around half of the companies on the Fortune 500 list offer some sort of formalized mentoring program, many prove ineffective. In Accenture’s case, the company takes the time to evaluate the “people-development skills” of its counselors, and those ratings have a direct impact on counselor paychecks. “If you are not a good career counselor, there are consequences,” Smart explains. Sources. Marquez, J. “Accentuating the Positive.” Workforce, September 22, 2008, pp. 18–-25. Levering, R.; and M. Moskowitz. “And the Winners Are…” Fortune, February 2, 2009, pp. 67–-78. Berfield, S. “Mentoring Can Be Messy.” BusinessWeek, January 29, 2007, pp. 80–-81. Questions: 3.1 What could Accenture do to reduce the number of consultants who leave to work for client firms? Would those strategies have any unintended drawbacks? Answer: One obvious approach is to create some sort of contractual agreement that states that consultants cannot join a client firm for some specified period of time. That strategy would have two unintended drawbacks. First, it might lower the performance of Accenture consultants to some degree, as some consultants might go “above and beyond” when performing their tasks partly because they see a client firm as a good long-term destination. Second, consultants might wind up feeling trapped to some extent, creating resentment toward Accenture. The best approach is to be supportive enough of consultants’ needs that a sense of affective and normative commitment develops. 3.2 Can you think of any “silver linings” for Accenture when consultants do leave to work for clients? Can such situations benefit the firm in some way? Answer: Such exits wind up broadening and deepening Accenture’s professional network. Assuming the exiting consultants feel good about Accenture and their time there, they might deepen their new firm’s professional relationship with Accenture. They may also be in a position where they can recommend Accenture to supplier firms or partner firms. 3.3 Some companies are reluctant to institute formal programs like Accenture’s career counselors, assuming instead that advice can be passed informally from higher ups. What are some arguments for formalizing the process the way that Accenture does? Answer: The advantage of informal systems is that there tends to be a better interpersonal fit between “counselor” and “advice receiver”, because both parties have self-selected into the relationship (as opposed to having it assigned to them). However, it is more difficult for some employees to develop those interpersonal relationships, either because of their personality or their fit with potential “counselors.” As a result, some employees have more access to advice networks than others. Formalizing the process, as Accenture has, evens out that access. INTERNET CASE: MYTHS ABOUT MILLENNIALS" by Cam Marston http://humanresources.about.com/od/managementtips/a/millennial_myth.htm Questions: 3.1 Which of the myths about millennials have students heard the most, either from parents, employers, or other older parties? Do students agree with the author’s suggested realities about those myths? Answer: Answers to this question will vary, but the work ethic issue will probably be the most commonly voiced opinion, with older employees mistaking differences in work style for differences in work ethic. Common Myths About Millennials: 1. Millennials are Lazy: This myth suggests that millennials lack a strong work ethic and are not willing to put in the hard work necessary to succeed. 2. Millennials are Entitled: It is often said that millennials expect too much too soon, such as promotions and high salaries without putting in the required effort and time. 3. Millennials are Disloyal: The belief that millennials frequently job-hop and lack loyalty to their employers. 4. Millennials are Technology Obsessed: The stereotype that millennials are constantly glued to their devices and unable to engage in face-to-face interactions effectively. Student Reactions and Agreement with Author’s Realities: 1. Reality: Millennials are Hardworking: Many students agree with the author that millennials are indeed hardworking. They believe that the misconception of laziness comes from a different approach to work, such as valuing work-life balance and utilizing technology to work smarter, not harder. 2. Reality: Millennials Value Meaningful Work: Students often agree that millennials are not entitled but rather seek meaningful and fulfilling work. They value jobs that align with their personal values and offer opportunities for growth and impact. 3. Reality: Millennials Value Loyalty to Ethical Employers: While students acknowledge that job-hopping can occur, they agree with the author that it is often due to a lack of loyalty from employers or the pursuit of better opportunities. They believe millennials will stay with companies that treat them well and offer career advancement. 4. Reality: Millennials Leverage Technology for Efficiency: Students generally agree that being tech-savvy is an asset, not a flaw. They use technology to enhance productivity, connectivity, and innovation in the workplace. In summary, students frequently hear myths about laziness, entitlement, disloyalty, and technology obsession from older generations. However, they tend to agree with the author's realities that millennials are hardworking, value meaningful work, show loyalty to ethical employers, and use technology to their advantage. 3.2 As millennials, how do students think they themselves should be managed, from an organizational commitment perspective? Answer: Answers to this question will also vary, but will tend to revolve around factors that emphasize affective and normative commitment, rather than continuance commitment. Students may value more meaningful work, more voice, closer mentoring relationships, more training opportunities, and more flexibility in work schedule and location. 1. Offer Meaningful Work: Millennials seek jobs that align with their values and provide a sense of purpose. Organizations should ensure that the roles offered to millennials are meaningful and contribute to their personal and professional growth. 2. Provide Opportunities for Growth: Millennials value career development and continuous learning. Companies should offer clear career paths, opportunities for advancement, and professional development programs to keep millennials engaged and committed. 3. Foster a Positive Work Culture: A supportive and inclusive work environment is crucial for millennials. Organizations should promote teamwork, respect, and diversity, creating a workplace where millennials feel valued and heard. 4. Encourage Work-Life Balance: Flexibility is important to millennials. Providing options for remote work, flexible hours, and ensuring a healthy work-life balance can increase their job satisfaction and commitment to the organization. 5. Recognize and Reward Contributions: Acknowledging the hard work and achievements of millennials is essential. Regular feedback, recognition programs, and fair compensation can motivate them and reinforce their commitment to the organization. 6. Promote Open Communication: Millennials appreciate transparency and open dialogue with their leaders. Organizations should foster an environment where feedback is encouraged, and communication flows freely between all levels of the hierarchy. 7. Emphasize Ethical Practices: Millennials are more likely to stay committed to organizations that uphold strong ethical standards and social responsibility. Companies should engage in sustainable practices and contribute positively to society. 8. Leverage Technology: Given their tech-savviness, providing millennials with the latest tools and technologies to perform their jobs efficiently can enhance their productivity and job satisfaction. By focusing on these strategies, organizations can foster affective commitment, where millennials feel emotionally attached to their workplace, thus enhancing their overall organizational commitment. EXERCISE: REACTING TO NEGATIVE EVENTS Instructions: Ask students to read the three vignettes and write down two specific behaviors that they would engage in as a result of the work situation. Emphasize that they should write down what they actually would do, as opposed to what they wish they would do. This is meant to encourage them to write “nothing” if they would indeed to nothing in response to one of the situations. This is important because responses like loyalty and neglect in the Exit-Voice-Loyalty-Neglect framework are very passive responses to negative events that largely involve doing nothing. Then put the students in groups, have them come to a consensus on the most likely behaviors for each scenario, and have them share those behaviors with the class. Sample Behaviors: Here’s an example of the kinds of behaviors students might come up with for each of the three scenarios: Questions: Personal factors that might cause one to adopt voice or loyalty over exit or neglect include how patient an employee is, how much he/she likes colleagues and coworkers, as well as marketability. Situational factors that might drive the same sort of choice include the prestige of the company and the general labor market conditions. There are responses that do not fit into the Exit-Voice-Loyalty-Neglect framework. For example, it’s not clear where the “venting” response above would fit. In general, actions that fall under the “counterproductive behavior heading (discussed in Chapter 2) do not really fall into any of the Exit-Voice-Loyalty-Neglect categories. OMITTED TOPICS The field of organizational behavior is extremely broad and different textbooks focus on different aspects of the field. A brief outline of topics that are not covered in this text, but which the professor might want to include in his or her lecture, is included below. In cases where these topics are covered in other chapters in the book, we note those chapters. In cases where they are omitted entirely, we provide some references for further reading. • Attitudes – Organizational commitment is part of a larger family of work-related attitudes. Attitudes have an associated attitude object, which may be the organization, the job, a coworker, or the leader. They also have an evaluative component (what is felt toward the object), a cognitive component (what is thought about the object), and a behavioral component (a predisposition to act a particular way towards the object). For more on this, see: McGuire, W. J. “Attitudes and Attitude Change.” In Handbook of Social Psychology, Vol. 2, eds. G. Lindzey and E. Aronson. New York: Random House, 1985, pp. 233-346. • Job Satisfaction – Along with organizational commitment, job satisfaction is the most commonly discussed job attitude. It reflects a pleasurable emotional state resulting from an appraisal of one’s job and is covered in Chapter 4. • Unfolding Model of Turnover – Describes the process by which employees decide to leave the organization, including the roles of “shocks to the system” (a critical event) and “decision frames” (lenses based on past experience that color perceptions). For more on this, see: Lee, T. W.; and T. R. Mitchell. “An Alternative Approach: The Unfolding Model of Employee Turnover.” Academy of Management Review 19 (1994), pp. 51-89. Instructor’s Manual: Ch. 4: Job Satisfaction CHAPTER OVERVIEW This chapter gives an overview of job satisfaction, or the feelings employees have about their jobs. Precursors to job satisfaction are examined, including the value-percept theory, job satisfaction facets, job characteristics, and mood fluctuations. The impact of job satisfaction on job performance, organizational commitment, and life satisfaction is considered, along with techniques that organizations can use to improve job satisfaction. LEARNING GOALS After reading this chapter, you should be able to answer the following questions: 4.1 What is job satisfaction? 4.2 What are values, and how do they affect job satisfaction? 4.3 People often evaluate their job satisfaction according to specific facets. What are those facets? 4.4 Which job characteristics can create a sense of satisfaction with the work itself? 4.5 How is job satisfaction affected by day-to-day events? 4.6 What are mood and emotions, and what specific forms do they take? 4.7 How does job satisfaction affect job performance and organizational commitment? How does it affect life satisfaction? 4.8 What steps can organizations take to assess and manage job satisfaction? CHAPTER OUTLINE I. Job Satisfaction A. Job satisfaction is defined as a pleasurable emotional state resulting from the appraisal of one’s job or job experiences II. Why Are Some Employees More Satisfied Than Others? A. Employees are satisfied when their job provides the things they value, or things they consciously or subconsciously want to seek or attain Try This! Open the class by asking students what they want their ideal job to supply for them—what values do they want that job to fulfill? List the values they describe on the board, grouping similar values into columns. This process will result in a table similar to Table 4-1. B. Value Fulfillment: Value-Percept Theory 1. Job satisfaction depends on whether you perceive that your job supplies the things that you value a. Dissatisfaction = (Vwant – Vhave) x (Vimportance) 2. People evaluate job satisfaction according to specific facets of the job a. Pay satisfaction b. Promotion satisfaction c. Supervision satisfaction d. Coworker satisfaction e. Satisfaction with the work itself Try This! Before you discuss which of the specific facets is the strongest driver of overall job satisfaction, ask students to guess which one is the strongest driver. Students who have not yet read the book will likely guess pay satisfaction, but some other students will correctly guess satisfaction with the work itself. Encourage the two students to debate each others’ position before revealing the results. 3. Research results show that satisfaction with the work itself is the strongest driver of overall job satisfaction, followed by satisfaction with coworkers and supervision. Satisfaction with promotions and pay have weaker relations to overall job satisfaction. OB on Screen: Burn. The clip referenced in the book begins around the 5:41 mark of the film, continuing until about the 13:10 mark. The clip includes interviews with a number of Detroit firefighters as they talk about what they do (and why they do it). They reference a number of values that their work supplies for them, including altruism, status, coworkers, and the work itself. They get to help others, make a different, do their work their own way, bond with one another, and be something special. Ask the students why they believe that firefighters are drawn to the work, often across generations. What do students find appealing, even when compared to the occupations the students are pursuing. Then ask them what values the job of a firefighter would not supply to them. Often those answers are a safe and comfortable environment and high and secure salaries. Try This! Use the Burn clip for a different chapter. The clip provides a good demonstration of challenge and hindrance stressors in Chapter 5 on Stress, and could also tie into a discussion of stress management. The clip would also be relevant to discussions of intrinsic motivation and psychological empowerment in Chapter 6 on Motivation. Bonus OB on Screen (from 2nd and 3rd ed): Michael Clayton. The clip referenced in the book begins around the 8:29 mark of the film, continuing until about the 15:51 mark. The clip depicts Michael Clayton dealing with a client of his law firm--a client who has fled the scene of a hit and run at a rural road. Ask the students why Michael seems so dissatisfied with his job-what is he missing? From the perspective of the value-percept theory, what values are not being fulfilled? From the perspective of job characteristics theory, what core job characteristics are missing? In addition, ask the students what emotions are being triggered by the conversation with the client, both in the kitchen and on the drive back home. Please email Jason Colquitt ([email protected]) if you have any questions about using OB on Screen in your teaching. Bonus OB on Screen (from 1st ed): The Island. Chapter 1 of the DVD (beginning at 0:00 and ending at 10:34 for a total running time of 10 minutes, 34 seconds) depicts the beginning of a typical day for Lincoln Six Echo—a typically boring and monotonous day. As the scene begins, ask students to keep track of the various moods in Figure 4-6 and the various emotions in Table 4-2. Which of them are illustrated in the clip? Which moods do the authorities at the facility most explicitly try to encourage and discourage? Which emotions are triggered by the daily “Island” announcement, on the part of both the winners and the losers? C. Satisfaction with the Work Itself: The Job Characteristics Model 1. Work is more satisfying when it provides three “critical psychological states” a. Meaningfulness of work b. Responsibility for outcomes c. Knowledge of results Asset Gallery (Job Satisfaction/Mgmt Video DVD): Miserable at Work?. This Today Show video clip features an interview with the author of Three Signs of a Miserable Job, where he talks about what feelings of irrelevance, “immeasurement,” and anonymity mean from a job satisfaction perspective. 2. Five core job characteristics are linked to these psychological states a. Variety – the extent to which the job requires different activities requiring different skills and talents b. Identity – the degree to which the job allows an employee to complete a whole, identifiable piece of work c. Significance – the degree to which the job has an impact on the lives of other people d. Autonomy – the degree to which the job provides freedom, independence and discretion to the individual performing the work e. Feedback – the degree to which the job itself provides clear information about how well the individual is performing the work OB Assessments: Core Job Characteristics. This assessment measures the extent to which a student’s job contains core job characteristics. If you have students who are not working, tell them to think of being a student as their job, and to answer the questionnaire accordingly. Use a show of hands to see how many students fell above and below the average level, and see if students will volunteer any extremely high or low scores. Ask students with particularly high scores what explains their levels, and do the same for students with particularly low scores. Please see the Instructor PowerPoints for Bonus Assessments on Growth Need Strength and Emotional Labor. Please see the Connect assignments for this chapter for assessments on Positive Emotionality and Flow. Please email me at [email protected] if you have any questions about using these assessments in your teaching. 3. Relation between core job characteristics and job satisfaction a. Each of the five core job characteristics is related to job satisfaction – either moderately or strongly b. The relationship between core job characteristics and job satisfaction is moderated by knowledge and skill and growth need strength – the relationship is stronger when these variables are present c. Job enrichment occurs when the duties associated with a job are expanded to create higher levels of the core job characteristics d. Employees engage in job crafting when they shape or mold their jobs to make them more enriching D. Mood and Emotions 1. Job satisfaction levels fluctuate over time, with the fluctuations caused primarily by mood and emotions a. Moods – states of feeling that are mild in intensity, last for an extended period of time, and are not explicitly directed at or caused by anything i. Moods are categorized in two ways a. pleasantness – is the mood good or bad? b. activation – to what extent does the mood cause you to feel activated and aroused? ii. Some organizations offer perks that are designed to improve an employee’s mood – things such as an onsite gym or even strolling musicians iii. When individuals are highly skilled and work in challenging jobs, a positive mood state called “flow” results. Flow creates a total immersion in the task at hand, with individuals sometimes losing track of the time that’s passed. b. Emotions – states of feeling that are often intense, last for only a few minutes, and are clearly directed at (and caused by) someone or some circumstance i. Emotions are often triggered by specific events, as described by “affective events theory.” ii. Positive emotions include things like joy, pride, relief, etc. iii. Negative emotions include things like anger, anxiety, fear, etc. iv. Some jobs require “emotional labor” in which employees must manage their emotions to complete their job duties successfully a. “Emotional contagion” can occur when one person “catches” the emotions of another person – this phenomenon can explain why customers are less likely to purchase from a dissatisfied salesperson, for example Asset Gallery (Emotions, Attitudes, Values/Mgmt Video DVD): Keeping Your Emotions in Check. This Today Show video clip talks about managing emotions to communicate effectively in interpersonal relationships. Try This! Ask students in the class if any of them work in retail or other customer service types of settings. Ask those students to explain the kinds of emotions they often feel during the work day, and the kinds of emotions they need to project to customers. Do they struggle with issues of emotional labor or emotional contagion? If some students are more easily able to cope with such work contexts, why might that be? You could draw a bridge to Chapter 10 on Ability here, where emotional intelligence is discussed. E. Summary: Why Are Some Employees More Satisfied than Others? III. How Important Is Job Satisfaction? A. Research Results 1. Job satisfaction has a moderate positive effect on job performance. People who experience higher levels of job satisfaction tend to have higher levels of task performance and citizenship behavior, and lower levels of counterproductive behavior. 2. Job satisfaction has a strong positive effect on organizational commitment. People who experience higher levels of job satisfaction tend to feel higher levels of affective and normative commitment, but not necessarily of continuance commitment. B. Life Satisfaction 1. Job satisfaction is strongly related to life satisfaction, or the degree to which employees feel a sense of happiness with their lives OB at the Bookstore: The Happiness Project. The author describes a yearlong project to become more happy. She based the specific steps in her project on readings in philosophy, religion, and popular culture, along with scientific research in psychology. Ask students how they would plan and prepare their own yearlong happiness project. What would they study, and what would they do during their project? Do they think they can learn from someone’s happiness project, or is this all too idiosyncratic? 2. Increases in job satisfaction have a stronger impact on life satisfaction than do increases in salary or income OB Internationally. This feature shows that money is not necessarily related to happiness, even on a national level. Although countries above the poverty line are generally happier than countries below the poverty line, for countries with an average income of $20,000 or more, additional income is not related to additional satisfaction. Ask students to hypothesize about why this might be so. IV. Application: Tracking Satisfaction A. Attitude surveys tend to be the most accurate and effective way for organizations to track satisfaction levels. B. Although many organizations design their own surveys, there are also benefits to using an existing survey such as the Job Descriptive Index (JDI), which measures satisfaction in five facets: 1. Pay satisfaction 2. Promotion satisfaction 3. Supervisor satisfaction 4. Coworker satisfaction 5. Satisfaction with the work itself C. Recommendations for JDI Administration 1. Survey as much of the company as possible 2. Keep the survey responses anonymous – be careful about collecting demographic information 3. Use JDI results for comparisons – with “neutral levels”, with national norms, and within the organization itself 4. Feedback the results to employees, so that they can be involved in an improvement process DISCUSSION QUESTIONS 4.1 Which of the values in Table 4-1 do you think are the most important to employees in general? Are there times when the values in the last three categories (altruism, status, and environment) become more important than the values in the first five categories (pay, promotions, supervision, coworkers, the work itself)? Answer: In general, employees value the work itself over all of the other values in Table 4.1. However, altruism, status, and environment may become more important depending on individual needs and characteristics. For example, an insecure employee may value a comfortable and safe working environment above all of the other categories on the table. The most important values to employees in general are likely "the work itself," "pay," and "supervision." However, values in the last three categories (altruism, status, and environment) can become more important during specific circumstances, such as when employees seek meaningful work (altruism), desire recognition or advancement (status), or prioritize a positive and sustainable work environment (environment). These values may take precedence depending on individual life stages, career goals, or personal priorities. 4.2 What steps can organizations take to improve promotion satisfaction, supervision satisfaction, and coworker satisfaction? Answer: Organizations can offer fair and well-publicized promotion policies, provide supervisors with training to be sure that they are dealing with employees effectively, and offer opportunities for coworkers to socialize to improve promotion satisfaction, supervision satisfaction, and coworker satisfaction. 4.3 Consider the five core job characteristics (variety, identity, significance, autonomy, and feedback). Do you think that any one of those characteristics is more important than the other four? Is it possible to have too much of some job characteristics? Answer: Autonomy and significance are probably the two most important job characteristics. It is possible to have too much of a job characteristic – consider variety, for example. There are times when employees would like to be able to get into a routine and become experts at their job duties, and excessive variety could prevent that. 4.4 We sometimes describe colleagues or friends as “moody.” What do you think it means to be “moody” from the perspective of Figure 4-6? Answer: The “moody” term really probably suggests two things in terms of Figure 4-6. First it probably suggests frequent displays of intense negative emotions (hostile, nervous, annoyed). However, it also suggests an inconsistency in mood, with the person swinging between those negative emotions and more pleasant sorts of feelings (enthusiastic, happy, serene). From the perspective of Figure 4-6, being "moody" likely refers to frequent fluctuations in an individual's emotions and moods, impacting their overall job satisfaction and work experience. This variability can affect how they perceive their work environment, interact with colleagues, and perform tasks, making their satisfaction and engagement unpredictable. 4.5 Consider the list of positive and negative emotions in Table 4-2. Which of these emotions are most frequently experienced at work? What causes them? Answer: The positive emotions most likely to be experienced at work are pride, relief, and hope – these are generally connected to work outcomes or organizational issues. The negative emotions are anger or envy (typically against a boss or coworker), anxiety or guilt (typically linked to not doing work that was assigned), and shame or sadness (typically linked to relations with others in the organization.) CASE: MARS Questions: 4.1 In what ways might being privately held benefit the job satisfaction of employees? In what ways might being publicly traded benefit satisfaction? Answer: Being privately held allows the company to do idiosyncratic and untraditional things culture-wise and job-wise that could benefit job satisfaction. Analysts and business writers might look down on such things, which would create pressure in a publicly traded environment. In contrast, being publicly traded affords the scale needed to do expensive things that “move the needle” on job satisfaction (e.g., better benefits, a better physical work environment). 4.2 If you worked in a company that valued and required privacy, would it affect your job satisfaction? What about your life satisfaction? Answer: Answers to this question will likely vary, but strict privacy seems to cut both ways when it comes to job satisfaction. On the one hand, it allows companies to protect any idiosyncratic things that they do that benefit satisfaction. On the other hand, the public image of a company, its products, and its practices can become a relevant satisfaction determinant for many employees. It is difficult to display pride in one’s employer when no one knows anything about that employer. Working in a company that valued and required privacy could positively or negatively affect job satisfaction, depending on your personal preferences and work style. If you value privacy and enjoy working independently, it could enhance your job satisfaction. However, if you thrive on collaboration and open communication, the emphasis on privacy might feel restrictive and reduce your satisfaction. Regarding life satisfaction, the impact would depend on how much your job satisfaction influences your overall well-being. If your work aligns with your values and allows you to maintain a healthy work-life balance, your life satisfaction might remain high. Conversely, if the privacy requirement feels isolating or stressful, it could spill over into your personal life, potentially reducing your life satisfaction. 4.3 Do consumers deserve to know about the companies that make the products they buy? Would such knowledge affect your purchasing decisions? In what way? Answer: Most students will agree that consumers do deserve to know, increasingly so as time moves forward. Concerns about corporate social responsibility are becoming more apparent, and companies are being to differentiate themselves on that front. Answers will vary about personal buying habits, and financial security likely plays a role there. Yes, consumers deserve to know about the companies that make the products they buy. This transparency allows consumers to make informed decisions based on factors like ethical practices, environmental impact, labor conditions, and corporate values. Such knowledge could significantly affect purchasing decisions. For example, if a company is known for unethical practices or poor treatment of workers, I might choose to avoid their products in favor of a competitor that aligns more closely with my values. On the other hand, if a company demonstrates strong social responsibility, I might be more inclined to support them through my purchases. BONUS CASE: ZAPPOS (from 2nd ed) “Create fun and a little weirdness.” That’s one of the core values of Zappos, the Las Vegas-based e-commerce site that specializes in shoes, apparel, and electronics. What’s weird, you ask? Well, for starters, the CEO—Tony Hsieh—hosts company pajama parties and obsessively blogs about a variety of subjects, from how Twitter can make you a happier person to whether eggnog tastes good on mashed potatoes. The company also employs a full-time life coach. Employees can talk about personal issues, chat off-the-record about their workgroup, or get advice on advancing at the company. The one requirement is that they sit on a red velvet throne during their session. Even the hiring process is a little weird, including some non-traditional interview questions like “What’s your theme song?”, “If you could be a superhero, which one would you be?”, and “How weird are you?” Those who get through that process don’t just read about fire-able offenses in some employment manual. Instead, human resources employees act out the “no-no’s” in Saturday Night Livestyle skits." The company lives up to the “fun” part of that core value by taking a number of steps to keep employees satisfied with their jobs. Everybody gets a free lunch and access to both a nap room and a concierge service. Zappos also offers profit sharing and covers 100% of employees’ health insurance premiums. Employees are also authorized to give any other employee a $50 bonus for a job well-done. Zappos encourages a family style feeling by encouraging managers to spend 10% to 20% of their time with their employees outside the office. And the company closely guards the fun culture that it’s created, placing an emphasis on positive thinkers during its hiring process. These sorts of practices explain how Zappos finished #23 on Fortune’s “100 Best Companies to Work For” list, the highest ranking ever for a newcomer to the list." Zappos believes that satisfied employees will ultimately result in satisfied customers. The company finished seventh in BusinessWeek’s annual ranking of customer service quality, with around 70% of surveyed customers reporting that they would “definitely recommend” Zappos to others. One likely reason for those high marks is that Zappos does not outsource call center duties. Employees are told that their job is to delight customers, and they are encouraged to use their imaginations—rather than some predetermined script—during calls. They might encourage customers to order two sizes of shoes, because Zappos offers free shipping for both purchases and returns, or recommend a competitor for items that are out of stock. Zappos employees have even been known to send handwritten notes or flowers in cases where customers complained about a tough workday. Such gestures can have a significant impact, as three-quarters of the company’s purchases are made by repeat customers." When a company promotes “a little weirdness,” it becomes important to hire people who will be satisfied in that sort of environment. Zappos does that by focusing on positive people during its hiring process, but what happens if new hires realize that they’re not satisfied with their job, their coworkers, or the organization? That’s where “The Offer” comes in. New hires begin their Zappos employment with a four-week training period that acquaints them with the company’s strategy and its approach to customer service, receiving their full salary along the way. One week in, the new hires are offered a $2000 bonus…to quit. That’s right—new hires can walk away with one-weeks salary and an extra $2000 in their pocket. Zappos uses “The Offer” to give employees who may not enjoy working at Zappos an out. " Zappos CEO Tony Hsieh justifies “The Offer” this way: “It’s best to know early on if an employee doesn’t buy into the vision or the culture. It just makes economic sense.” Indeed, Zappos has actually upped “The Offer” over the years, first from $100 to $500, then to $1000, then to its current level. Hsieh reports that around 3% of employees take the money and run, with 97% evidently viewing Zappos as a place where they’ll be happy to work. There’s no telling how the job satisfaction within a unit would be altered had those 3% stuck around, despite their lack of enthusiasm for the company’s practices. At the very least, that 97% number is a testament to all the things Zappos does to maximize job satisfaction, as well as the diligence they show during the hiring process." Sources: O’Brien, J. M. “The 10 Commandments of Zappos.” Fortune, January 22, 2009, http://money.cnn.com/2009/01/21/news/companies/ obrien_zappos10.fortune/index.htm (June 3, 2009). O’Brien, J. M. “Zappos Knows How to Kick It.” Fortune, February 2, 2009; pp. 55-60. “Zappos Blogs: CEO and COO Blog.” January 25, 2009, http://blogs.zappos.com/ blogs/ceo-and-coo-blog (June 12, 2009). Levering, R.; and M. Moskowitz. “And the Winners Are…” Fortune, February 2, 2009; pp. 67-78. “The Customer Service Champs.” BusinessWeek, February 19, 2009, http:// bwnt.businessweek.com/interactive_reports/customer_service_2009/ index.asp (June 12, 2009). Taylor, B. “Why Zappos Pays New Employees to Quit—and You Should Too.” Harvard Business Publishing, May 19, 2008, http://blogs.harvardbusiness.org/taylor/2008/05/ why_zappos_pays_new_employees.html (June 12, 2009). McFarland, K. “Why Zappos Offers New Hires $2000 to Quit.” BusinessWeek, September 16, 2008, http://www.businessweek.com/smallbiz/content/ sep2008/sb20080916_288698.htm (June 12, 2009). Borden, M. “#20 Zappos.” Fast Company, February 11, 2009, http://www.fastcompany.com/ fast50_09/profile/list/zappos (June 12, 2009). Questions: 4.1 What do you think of “The Offer” as a strategy for maximizing job satisfaction? Answer: Most students will view it as a good idea, assuming the statistics stay where they are. That is, as long as 97% turn down the offer and stay with Zappos, it shows that people aren’t just “gaming the system” to get the $2000 bonus. “The Offer” is the kind of policy that winds up taking on cultural significance--it’s tangible evidence of how much Zappos cares about protecting job satisfaction and morale. From that sense, it’s impact transcends the effect it actually has on who stays or who goes. “The Offer” is a unique and effective strategy for maximizing job satisfaction at Zappos. By providing new hires with the option to leave early in their training period with a financial incentive, Zappos ensures that only those who are genuinely aligned with the company’s culture and values remain. This approach helps filter out employees who might not be fully committed or enthusiastic about the job, preventing potential dissatisfaction or disengagement later on. The strategy likely contributes to a more motivated and satisfied workforce because it fosters a sense of ownership and commitment among those who choose to stay. Additionally, by removing employees who are not a good fit early on, Zappos can maintain a positive and cohesive work environment, which is essential for sustaining high levels of job satisfaction. Overall, “The Offer” aligns with Zappos' emphasis on cultural fit and positive workplace dynamics, making it a smart approach to ensuring long-term job satisfaction and organizational commitment. 4.2 Could that strategy be used at other organizations, or does it require the sort of “quirky environment” that Zappos emphasizes? Answer: It could certainly be used as some other organizations, but perhaps not the majority. It seems to require an organization that doesn’t foster a sense of jaded cynicism among its employees. If employees are cynical, they react to an unusual policy such as “The Offer” with derision and snickers. Those sorts of negative reactions remove the cultural value that the policy has at Zappos. If a company’s leadership and culture inspire trust and commitment, however, an unusual policy like “The Offer” could be similarly effective. 4.3 As the profile of Zappos increases, and as the notoriety of “The Offer” rises, do you think the policy will need to evolve? In what way? Answer: As noted above, as long as 97% of new hires turn down the offer, there will be no obvious reason why it needs to evolve. If that number drops significantly, perhaps into the 80% range, then that means Zappos is drawing interest from applicants who don’t really care to stay. One solution to that sort of trend would be to require a second week of service before “The Offer” is made. INTERNET CASE: THE PROOF IS IN THE PROFITS: AMERICA’S " HAPPIEST COMPANIES MAKE MORE MONEY by Mark Crowley"http://www.fastcompany.com/3006150/proof-profits-americas-happiest-companies-also-fare-best-financially Questions: 4.1 Do students find it intuitive that companies who prioritize employee job satisfaction will tend to be more profitable? Answer: Answers to this question will vary, with most students suggesting that it will depend on industry. It might be more intuitive that the relationship will hold in customer service environments, given the direct employee-customer contact. But that limitation ignores the effect of satisfaction on job performance, organizational commitment, creativity and innovation, and so forth. Yes, it is intuitive to many students that companies prioritizing employee job satisfaction tend to be more profitable. Satisfied employees are typically more engaged, productive, and committed to their work, which can lead to better customer service, higher-quality products, and more efficient operations. When employees feel valued and supported, they are more likely to go the extra mile, which contributes directly to a company's success. Additionally, high job satisfaction reduces turnover and absenteeism, which can significantly lower costs associated with hiring and training new employees. Therefore, it makes sense that companies fostering a positive work environment would see financial benefits. 4.2 Does the relationship between prioritizing job satisfaction and company profitability seem causal? Answer: Although a causal relationship is easy to defend based on organizational behavior theory and findings, there is also a possibility that early successes on the part of an organization allow it to spend money on the things that wind up sustaining job satisfaction. EXERCISE: JOB SATISFACTION ACROSS JOBS Instructions: Put students into groups and make sure they each have a copy of the OB Assessment for this chapter. Instruct them to come to consensus on each of the questions on the OB Assessment in reference to the four jobs (lobster fisherman, standup comedian, computer programmer, and President). Typical Scores: The Satisfaction Potential Scores for a standup comedian and a lobster fisherman will typically be highest, possibly even in the upper 100’s or even the lower 200’s. This is because those jobs have high levels of autonomy and feedback, with receive more weight in the formula used in the OB Assessment (because they get multiplied). The President’s score will usually come next, in the 50-100 range. That score is lower because the “checks and balances” created by Congress and the Supreme Court limit the President’s autonomy. In addition, feedback may be lacking because it’s often not known for a period of several years whether a given decision was “right.” The computer programmer will usually be lowest, struggling on all five job characteristics. Have a representative of each group share their scores with the class. Questions: The Satisfaction Potential Score is indeed meant to capture the job that is most enjoyable day-in and day-out. That does mean that being a lobster fisherman or a stand-up comic may usually be more enjoyable than being the President (a job that brings with it a great deal of responsibility and frustration). However, students would probably not pick being a lobster fisherman or stand-up comic if they could snap their fingers and magically attain one of the jobs covered in the exercise. That’s because there’s more involved in picking a job than what’s enjoyable. Being President would allow students to fulfill many other values, beyond just having satisfactory work tasks, making value-percept theory relevant to this issue. From Table 4-1, those values might include good pay, a sense of status, and the ability to engage in altruistic work. OMITTED TOPICS The field of organizational behavior is extremely broad and different textbooks focus on different aspects of the field. A brief outline of topics that are not covered in this text, but which the professor might want to include in his or her lecture, is included below. In cases where these topics are covered in other chapters in the book, we note those chapters. In cases where they are omitted entirely, we provide some references for further reading. Attitudes – Job satisfaction is part of a larger family of work-related attitudes. Attitudes have an associated attitude object, which may be the organization, the job, a coworker, or the leader. They also have an evaluative component (what is felt toward the object), a cognitive component (what is thought about the object), and a behavioral component (a predisposition to act a particular way towards the object). For more on this, see: McGuire, W. J. “Attitudes and Attitude Change.” In Handbook of Social Psychology, Vol. 2, eds. G. Lindzey and E. Aronson. New York: Random House, 1985, pp. 233-346. Job Involvement – Represents another commonly discussed job attitude, reflecting the degree to which one is cognitively engaged in and concerned about one’s present job. Job involvement can be viewed as a blend of job satisfaction and motivation (motivation concepts are covered in Chapter 6). For more on this, see: Lodahl, T. M.; and M. Kejner. “The Definition and Measurement of Job Involvement.” Journal of Applied Psychology 49 (1965), pp. 24-33. Dispositional Influences – Studies of identical twins raised apart have revealed that job satisfaction has a significant genetic component. Specifically, personality and dispositional variables like neuroticism and negative affectivity make some individuals dissatisfied by nature. Such effects are covered in our discussion of personality in Chapter 9. Herzberg’s Two-Factor Theory – This widely known (but scientifically unsupported) theory describes satisfaction and dissatisfaction as two separate concepts. Satisfaction is said to be driven by “motivators” such as promotion opportunities, recognition, and growth opportunities. Dissatisfaction is said to be driven by “hygiene factors” such as pay and the quality of supervision. The hygiene factor classification significantly underestimates the importance of pay and supervision, which are important factors in job satisfaction and motivation. For more on this, see: Herzberg, F. Work and the Nature of Man. Cleveland, OH: World, 1966. Emotional Intelligence – Includes a set of competencies that allow some individuals to accurately identify and express emotions. Individuals who are high on emotional intelligence may be more able to succeed in jobs that are high in emotional labor requirements. The competencies that underlie emotional intelligence are covered in our discussion of ability in Chapter 10. Instructor Manual for Organizational Behavior: Improving Performance and Commitment in the Workplace Jason Colquitt, Jeffery LePine, Michael Wesson 9780077862565, 9781260261554